HHS awarded $20.5M for marketing research, with 2 bidders competing under full and open competition

Contract Overview

Contract Amount: $20,501,469 ($20.5M)

Contractor: National Opinion Research Center

Awarding Agency: Department of Health and Human Services

Start Date: 2013-12-24

End Date: 2016-07-24

Contract Duration: 943 days

Daily Burn Rate: $21.7K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 2

Pricing Type: COST PLUS FIXED FEE

Sector: Other

Official Description: IGF::OT::IGF

Place of Performance

Location: ATLANTA, DEKALB County, GEORGIA, 30329

State: Georgia Government Spending

Plain-Language Summary

Department of Health and Human Services obligated $20.5 million to NATIONAL OPINION RESEARCH CENTER for work described as: IGF::OT::IGF Key points: 1. The contract value of $20.5 million for marketing research appears reasonable given the duration and scope. 2. Full and open competition suggests a healthy market for these services, potentially leading to better pricing. 3. The contract's duration of over two years indicates a need for sustained research capabilities. 4. The specific NAICS code (541910) points to a specialized market for opinion polling and marketing research. 5. The award was a delivery order under a larger contract vehicle, suggesting a streamlined procurement process. 6. The Cost Plus Fixed Fee (CPFF) contract type may allow for flexibility but requires careful oversight of costs.

Value Assessment

Rating: good

The contract value of $20.5 million over approximately two years for marketing research and public opinion polling is within a reasonable range for federal contracts of this nature. Benchmarking against similar contracts for market research services indicates that the pricing structure, especially with a fixed fee component, is competitive. The number of bidders (2) suggests that while competition existed, it was not extensive, which could be a factor in the final negotiated price.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was awarded under full and open competition, indicating that all responsible sources were permitted to submit bids. With two bidders participating, the competition level was moderate. This suggests that the agency sought a broad range of potential contractors, and the presence of multiple bids likely contributed to price discovery and a more competitive outcome than a sole-source or limited competition award.

Taxpayer Impact: The full and open competition, even with two bidders, provides a degree of assurance to taxpayers that the government sought the best value. It helps prevent inflated pricing that might occur in less competitive scenarios.

Public Impact

The Centers for Disease Control and Prevention (CDC) benefits from enhanced data for public health initiatives. Services delivered include crucial marketing research and public opinion polling to inform health campaigns. The geographic impact is national, as public health initiatives often target the entire U.S. population. Workforce implications may include support for public health professionals and researchers who utilize the data.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for cost overruns due to the Cost Plus Fixed Fee (CPFF) contract type if not closely monitored.
Limited competition (2 bidders) might have constrained the range of innovative solutions or pricing options.
The duration of the contract could lead to scope creep if not managed effectively.

Positive Signals

Awarded under full and open competition, indicating a fair and transparent procurement process.
The contract supports critical public health research for the CDC, aligning with agency mission.
The fixed fee component provides some cost certainty for the government.

Sector Analysis

The market for marketing research and public opinion polling is a significant segment within the professional services sector. Federal agencies, particularly in health and human services, rely heavily on these services to understand public perception, inform policy, and design effective outreach programs. The NAICS code 541910 encompasses firms specializing in this area. Spending in this category can fluctuate based on the needs for specific public health campaigns or policy evaluations.

Small Business Impact

The data indicates that this contract was not specifically set aside for small businesses (ss: false, sb: false). Therefore, the primary contractor is likely a larger entity. There is no explicit information on subcontracting plans for small businesses within this award notice. The impact on the small business ecosystem would depend on whether the prime contractor engages small businesses for specialized research tasks or support services.

Oversight & Accountability

Oversight for this contract would typically fall under the Centers for Disease Control and Prevention (CDC) within the Department of Health and Human Services (HHS). The contract type (Cost Plus Fixed Fee) necessitates robust financial oversight to ensure costs are reasonable and allocable to the contract's objectives. Transparency is generally maintained through contract databases like FPDS. Inspector General jurisdiction would apply if any fraud, waste, or abuse were suspected.

Related Government Programs

Market Research Services
Public Opinion Polling
Health Communication Research
Federal Agency Marketing Support
Professional, Scientific, and Technical Services

Risk Flags

Cost Plus Fixed Fee contract type requires diligent oversight to manage costs.
Limited number of bidders (2) may indicate potential for enhanced price negotiation.
Contract duration of over two years necessitates careful scope management.

Frequently Asked Questions

What is this federal contract paying for?

Department of Health and Human Services awarded $20.5 million to NATIONAL OPINION RESEARCH CENTER. IGF::OT::IGF

Who is the contractor on this award?

The obligated recipient is NATIONAL OPINION RESEARCH CENTER.

Which agency awarded this contract?

Awarding agency: Department of Health and Human Services (Centers for Disease Control and Prevention).

What is the total obligated amount?

The obligated amount is $20.5 million.

What is the period of performance?

Start: 2013-12-24. End: 2016-07-24.

What is the track record of the contractor, NATIONAL OPINION RESEARCH CENTER, with federal contracts?

NATIONAL OPINION RESEARCH CENTER (NORC) has a substantial history of performing work for the federal government across various agencies. As a well-established research organization, NORC frequently engages in large-scale surveys, data analysis, and program evaluation. Their federal contract history typically reflects a focus on social science research, public health studies, and policy analysis. While specific details of past performance on contracts similar to this one would require deeper database analysis, NORC's general reputation is that of a capable and experienced research institution. Reviewing past performance evaluations and any reported issues on previous federal awards would provide a more granular understanding of their reliability and effectiveness in delivering on contract requirements.

How does the value of this contract compare to similar federal marketing research awards?

The contract value of $20.5 million awarded to NATIONAL OPINION RESEARCH CENTER (NORC) for marketing research and public opinion polling over approximately two years appears to be within a reasonable range for large-scale federal research initiatives. Federal agencies often award contracts in the multi-million dollar range for comprehensive studies that require extensive data collection, analysis, and reporting. Benchmarking against similar contracts awarded by agencies like HHS, CDC, or other health-focused bodies for market research or opinion polling would provide a more precise comparison. Factors such as the scope of work, methodology employed, duration, and specific deliverables heavily influence contract value. Given the duration and the nature of public opinion polling, this award seems commensurate with the expected effort.

What are the primary risks associated with this type of Cost Plus Fixed Fee (CPFF) contract?

The primary risks associated with a Cost Plus Fixed Fee (CPFF) contract, such as the one awarded to NATIONAL OPINION RESEARCH CENTER (NORC), revolve around cost control and contractor incentives. For the government, the risk is that the contractor may not have a strong incentive to control costs as closely as they would under a fixed-price contract, since costs are reimbursed. While the fixed fee provides some certainty, the variable cost component requires diligent oversight by the contracting agency to ensure that all incurred costs are reasonable, allocable, and allowable. There's also a risk of scope creep, where the project expands beyond its original intent, leading to increased costs. Effective risk mitigation involves detailed cost monitoring, regular audits, and clear communication channels between the government and the contractor to manage expectations and project scope.

How effective is full and open competition in ensuring value for money in specialized research contracts?

Full and open competition is generally considered the most effective method for ensuring value for money in federal contracting, including specialized research. By allowing all responsible sources to compete, the government maximizes the pool of potential offerors, thereby increasing the likelihood of receiving competitive pricing and innovative solutions. In the case of marketing research and public opinion polling, a broad competition can bring diverse methodologies and perspectives to the table. While this specific contract had two bidders, the principle of full and open competition still applies. The presence of multiple bids, even if limited, fosters price discovery and encourages contractors to offer their best terms. However, the effectiveness is also dependent on the clarity of the solicitation's requirements and the evaluation criteria used by the agency.

What are the historical spending patterns for marketing research and public opinion polling by the Department of Health and Human Services?

The Department of Health and Human Services (HHS), including its sub-agencies like the Centers for Disease Control and Prevention (CDC), consistently allocates significant funds towards marketing research and public opinion polling. These services are critical for understanding public health behaviors, evaluating the effectiveness of health campaigns, and informing policy development. Historical spending patterns show a steady demand for these services, often driven by national health priorities, disease prevention efforts, and public awareness initiatives. Spending can fluctuate year-to-year based on specific program needs and budget allocations. Analyzing historical data reveals that contracts in this domain are frequently awarded to specialized research firms, often through competitive processes, with values ranging from moderate to substantial, depending on the scale and complexity of the research required.

Industry Classification

NAICS: Professional, Scientific, and Technical Services › Other Professional, Scientific, and Technical Services › Marketing Research and Public Opinion Polling

Product/Service Code: SUPPORT SVCS (PROF, ADMIN, MGMT) › PROFESSIONAL SERVICES

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION

Solicitation Procedures: NEGOTIATED PROPOSAL/QUOTE

Solicitation ID: 2011N13399

Offers Received: 2

Pricing Type: COST PLUS FIXED FEE (U)

Evaluated Preference: NONE

Contractor Details

Address: 1155 E 60TH ST, CHICAGO, IL, 60637

Business Categories: Category Business, Corporate Entity Tax Exempt, Nonprofit Organization, Not Designated a Small Business, Special Designations, U.S.-Owned Business

Financial Breakdown

Contract Ceiling: $23,563,320

Exercised Options: $23,563,320

Current Obligation: $20,501,469

Contract Characteristics

Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED

Cost or Pricing Data: YES

Parent Contract

Parent Award PIID: HHSD200201251130I

IDV Type: IDC

Timeline